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Also known as: liquidity tender, company buyback

Tender Offer

ConceptualFundraisingLegal

Definition

Tender Offer: A tender offer is a structured opportunity for shareholders to sell their shares, often to the company or an outside investor. Late-stage startups use tender offers to provide employee liquidity before an IPO or exit.

Example Usage

“The company ran a tender offer allowing employees to sell up to 25% of their vested shares.”

Common Misconceptions

All shareholders must participate. Tender offers are optional for eligible shareholders.
The price is always current fair market value. Terms vary; sometimes at a discount.
Tender offers are rare. They're increasingly common for well-funded late-stage startups.

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